McDonald’s and the McCafe Coffee Initiative
According to the food manufactures organization report (1997), the Canadian food industry has been growing and contributing immensely to the income of Canada of all these contribution more than half the earnings come from restaurants in the country. This repot shows that, although the business was doing well for he McDonalds, the breakfast and snack sales were steadily reducing .this decline in the sales was pointed tom the fact that there were emerging competitors in this field and also the establishment was not in good terms n terms of coffee sales. in the recent times he competition for customers has always been on the rise as most of the proprietors seek to maximize on the customer base. Most of them are fighting for customers at the city’s streets within high populations. It’s reported that most of the populated streets are crowded by hotels in attempt to cash in the customers. (Smith A F, 2007)
In an attempt to woo customers back to their coffee shops, the McDonald’s was re-branded to mc café. This was to operate within the mc Donald’s cafe. Although the McDonalds was mainly dealing in coffee [products, the new entry was to change this and introduce other [products other than coffee. The mccafe was based on the fact that it had to offer the coffees to the old group of the community. Its selling tool was to be based on the fact that they offer cheap convenient and accessible coffee at all times .the coffee was to be served at both the counter and the drive in area to maximize on both customers. (Stephen E , 2004).)
What made McDonald a Failure?
The prices of their products were high as compared to the products for other competitors. The prices were as follows .plain coffee was charged at $ 1 per twelve ounce cup. As per price and size the coffee was abeit expensive in terms of pricing. In terms of frills the establishment had no variety to choose from excetpt for their elegantly designed cups. The sizes of the cups are comparatively large. From the writing of their menu, it was obvious that the staff were not taking their work seriously. There were several spelling errors. Despite this the staff at this establishment ensures that service is timely. Their cappuccino was also a major setback although the coffee had a lot of foam which is a good quality; the sugar was not mixed well. This makes the drink more sugary and unpleasant to the customer. This shows how the staffs don’t take time to prepare the products. (Smith A F, 2007))
Advantages of mccafee
Although the price of their mocha products are relatively high, the quality of this product at this establishment is unrivaled .the plain coffee prepared by this establishment was also a plus. The staffs are also credited with good customer service .they concentrate on the customer needs leaving the customer fully satisfied .thus as regards the pricing, mccafe is a market leader. The establishment also had equipments that could be used by any staff to deliver high quality coffee. To ensure that the entire coffee brand had the same concentration, the products were prepackaged. (Smith A F, 2007))
The institution also used the media especially the news papers to market their products. During their product promotions carried out throughout the country, the customers were given the opportunity to sample their psroducts.this gave them a competitive advantage over the others. to ensure the success of their public campaign ,they sought the opinion of the consumers through the use of feed back cards (Strategic Management ,2001)
For the first period of marketing, this idea of mccafee was received so well by the customers .the sales of the establishment rose tremendously in the 1st half of the year.the introduction of this section also had no big hurdles in being incorporated to the existing market of the McDonalds products. Consequently, because many competitors had not realized this in advance, the competition was not stiff. This increased the sales volumes of the establishment .despite all these improvements the future of the operation is uncertain. As much as the management if the institution is looking forward for a good boost from mccafee on the sales of their parent restaurant, McDonald, they are still speculative. (Derdak T and Pederson P, 2004)
Derdak Thomas and Pederson Jay P. , Ed (2004).McDonald’s. International
directory of company histories. 3rd ed. St. James Press. pp. 108–109.
Smith Andrew F. (2007). The Oxford companion to American food and drink. Oxford University
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Strategic Management (2001)A Dynamic Perspective, Concepts and Cases
Stephen Evans (2004). “McDonald’s: The journey to health”. Retrieved 2 May 2011